Hyundai Pitches Hydrogen Transport Tied To Canada Submarine Bid

Early plans included three or four ‘network corridors’ where hydrogen fuel-cell facilities could support railways or heavy-duty trucks

Hyundai Motor Co. has proposed building hydrogen fuel-cell infrastructure in Canada as part of South Korea’s bid for a contract to build a new submarine fleet, according to an executive at Hanwha Ocean Co..

Hanwha Defence Canada chief executive Glenn Copeland said Hyundai briefed Canadian officials during their recent visit to Korea, presenting early plans for three or four “network corridors” in the northern country where hydrogen fuel-cell facilities could support railways or heavy-duty trucks.

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“It is a significant investment when it materializes, or if it materializes,” he said. “It would represent a transformational approach to major transportation corridors, whether it’s trucking or train.”

Copeland cautioned the plan is not final and remains under discussion between Hyundai and the Canadian government. In a statement, the company said it’s reviewing a range of opportunities with Canada, including “potential collaboration in the hydrogen sector.”

Hydrogen fuel cells would enable zero-emission trains that can refuel quickly and run long distances, fitting well with Canada’s vast geography and abundant clean power — factors that Copeland said make the country a “very attractive” market for the technology.

Canada wants the contract to build as many as 12 submarines to bring as much work and investment into the country as possible. The two finalists are a Hanwha-led bid with HD Hyundai Heavy Industries Co. and a German-Norwegian proposal from Thyssenkrupp Marine Systems, or TKMS. They’re competing for a multibillion-dollar program that the Canadian government views as a chance to steer new money into sectors hit by U.S. tariffs, including autos and steel.

Canada and Korea recently signed an agreement to look at bringing Korean auto manufacturing to Canada, and Industry Minister Melanie Joly traveled to Berlin on Monday to ink a similar pact with Germany. Those conversations are exploratory. Currently, no South Korean or European automakers assemble vehicles in Canada.

Copeland said an auto factory wasn’t part of the hydrogen-cell pitch he heard in Korea, but those talks are happening government-to-government.

Joly’s spokesperson emphasized she’s looking for investments that will grow auto manufacturing jobs. “Canada already excels at building cars, and we are seeking to further expand our capabilities,” Gabrielle Landry said in a statement.

In all, Hanwha has signed about 15 memoranda of understanding with Canadian firms pledging investments and jobs if it wins the submarine contract. They include a commitment of up to $345 million for Algoma Steel Group Inc. to potentially build a steel-beam mill, and an agreement to create a shipbuilding training hub in Hamilton, Ont.

The company is now racing toward a March 2 deadline to submit its final proposal to the Canadian government. Copeland said he expects a decision in June, and that Hanwha will continue rolling out additional pledges of domestic investment in the meantime — hinting at upcoming announcements in aerospace, mining and natural gas.

Intelligence Pact

Korea’s defense and foreign affairs ministers are set to travel to Ottawa this week to sign a military-intelligence pact with their Canadian counterparts. The agreement follows an October meeting between Carney and Korean President Lee Jae Myung where the two leaders pledged to strengthen defense cooperation.

Copeland, a long-serving Canadian defense executive who previously worked at Lockheed Martin Canada, argued the submarine deal is as much about geopolitics as hardware.

“This is about trade between Korea and Canada. This is about establishing a relationship in the Indo-Pacific,” he said. “It’s a gateway for us to increase exports — it’s more than a submarine program.”

Picking the German-Norwegian bid, on the other hand, would bring Canada closer to its NATO partners.

TKMS has decades of experience supplying North Atlantic Treaty Organization navies, and choosing its design would give Canada deeper interoperability with European allies. But this group is offering a new variant of the Type 212 submarine, with the first boats still under construction for Germany and Norway.

Copeland said Hanwha’s KSS-III submarine has an edge because it’s a larger, longer-range boat and is proven and available — allowing delivery of the first sub in 2032, four by 2035 and all 12 by 2042, he said.

“You can walk on it, touch it, feel it, see it. It’s ready to go now, and it will create savings for Canada in the sense that they don’t have to maintain the existing submarine fleet,” he said.

Copeland estimates Hanwha’s submarine program would support an average of about 25,000 Canadian jobs a year starting in 2027–28, peaking at 40,000 in the early 2030s, including at maintenance bases on both coasts. He also stressed Hanwha would transfer technology and intellectual property, granting Canada complete sovereignty over the fleet.

He wouldn’t disclose the price, but the program has previously been estimated at about $20 billion to $24 billion, making it one of the largest military procurements in Canadian history.

With assistance from Hyonhee Shin and Petra Sorge.

Bloomberg.com